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Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: XiaoYao who wrote (5750)	10/9/2005 8:30:36 PM
From: chowder	Read Replies (1) \| Respond to of 13449

Good question Xiao. What I think makes a difference this time is not only the amount of volume that accompanied the sell off, but look at the amount of systematic selling that accompanied it, (as represented by the red bars on the weekly chart which I explained in my previous message.) Also, money flows have made a dramatic reversal as well. ttrader.com What makes a difference is whether price action is accompanied by institutional buying or selling. If institutions don't start buying again, you won't see price break out to new highs on the strength of the retail investor. I'm not saying prices won't go higher. I'm saying I am looking at spots on a map that favor my adding a position or favor protecting profits. High volume while price is falling, negative money flows and institutions selling are ingredients to favor further downside. If the above criteria changes, then you have an environment that favors further upside. I look for the environment to change to favorable conditions before entering. If the environment changes to unfavorable conditions, I protect profits. dabum